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Who has to pay the outstanding loan after death? Know here what the rules say

Jyoti — Sat, 24 May 2025 04:45:51 +0000

On many occasions we need more money due to which we take a loan. But do you know if the person taking the loan dies, then who has to pay the outstanding loan?

Whether you want to fulfill your needs today or do something for tomorrow, you need money for all this. Be it the daily expenses of the house or buying something for the children, you need money. Not only this, many times people have some work for which they need more money at once. In such a situation, people take a loan from a bank or NBFC.

After this, you have to return this loan in the form of EMI with interest, but have you ever wondered that if the person who has taken the loan in his name dies, then what happens to the outstanding loan? Does anyone have to pay the remaining loan money? If yes, then who? So let’s try to know the answers to all these questions. You can know in detail about this rule related to loan further…

First, let’s know about credit cards

If you have got a credit card from a bank and you use it, then know that the credit card comes under the category of unsecured loan. Therefore, if the credit card dues remain and the person who took the loan dies, then the bank cannot collect any outstanding amount from anyone.

What are the rules for personal loan?

If we talk about personal loan, then like credit card, it also comes under the category of unsecured loan. Therefore, if the person taking the loan dies due to any reason, then the bank cannot take back the remaining loan amount from any successor or legal heir and cannot force anyone to do so.

What happens to the home loan?

If you are taking a home loan to buy or construct a house, then know that this loan comes under the category of secured loan. Therefore, this loan has to be repaid even after the death of the person taking the loan, because there is a provision of co-applicant in it. In such a situation, the person who is the co-applicant has to pay the outstanding amount to the bank.

Also know that the bank can recover its dues by selling the property of the person who has taken the loan. Also, under the SARFAESI Act, the bank can recover its money by auctioning the customer’s property. However, many banks get the loan insured so that if the person who has taken the loan dies, the bank gets the dues from the insurance.

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Bank Rules: RBI issues new circular on bank guarantee while taking loan, know all the important things

Jyoti — Wed, 02 Apr 2025 09:28:06 +0000

RBI has issued a Master Circular on April 1, 2025, which has issued new rules related to Guarantees, Co-Acceptance and Letters of Credit (LCs) for Primary (Urban) Co-operative Banks (UCBs).

What does the Master Circular say- This circular has been issued by RBI on 1 April 2025, in which UCBs i.e. (Urban) Co-operative Banks) have been told how to give bank guarantee and do co-acceptance (take guarantee of bills), and issue Letter of Credit (LC).

In simple words, if you want to take a guarantee or LC i.e. Letter of Credit for business from any UCB i.e. (Urban) Co-operative Banks (UCBs), then the bank will thoroughly check your financial condition and requirement. Only those with reliable and old customer profile will get these facilities. If you have got a bank guarantee, and there is any problem in your transaction, then it will be the responsibility of the bank to make the payment on time.

Let us understand it like this- Bank Guarantee:- Give only financial guarantee, not performance guarantee (can be given in some cases but with caution).

There should not be a guarantee for a period of more than 10 years. The total guarantee should not be more than 10% of the bank’s own funds.

Secured guarantee should be given priority, i.e. cash or government backing. Unsecured guarantee should be given in limited amount and very thoughtfully.

Co-acceptance (giving guarantee of bills):- Open only for those customers who already have a credit limit. Avoid fake bills (accommodation bills). There should be real business behind the bill and the customer should actually receive it.

Letters of Credit (LC):- Open only for those customers who are already regular customers of the bank. Issue only in the required amount and with security. Responsibility of immediate payment on LCs will have to be fulfilled, otherwise the bank’s credibility will be affected.

Other important things:- Keep internal checks and monitoring systems strong so that the bank’s risks do not increase due to these facilities. If any LC or guarantee is issued fraudulently and the bank suffers loss, then take action against the concerned officers.

While we are at it, let me tell you about Letters of Credit (LC)…

Letters of Credit (LC) i.e. loan letter, is a banking document used in international trade and sometimes domestic trade, which acts as a kind of bank guarantee. Letter of Credit (LC) is a promise issued by a bank that it will pay a certain amount of money on behalf of its customer (Buyer/Importer), provided the seller (Seller/Exporter) presents certain specified documents.

In simple words – LC is a promise given by the bank that “if my customer fulfills the agreed conditions, I will pay your money on time. Suppose an Indian company is ordering machinery from China. The Chinese company is not able to trust the Indian company whether it will make the payment or not. In such a case:- The Indian company gets a Letter of Credit issued from its bank. The bank promises that if the Chinese company fulfills the conditions of sending the goods and providing the documents, the bank will make the payment. This gives confidence to the Chinese company and it sends the goods. After receiving the documents, the bank makes the payment.

What documents are required under LC?

Bill of Lading (B/L)
Invoice
Packing List
Insurance Documents
Origin Certificate
Custom Clearance etc.

Why is LC necessary?

It guarantees trust. Makes trade possible without advance payment. Reduces risk – especially in international trade In.

What is its relation with loan?If you have opened LC for business, then it can be considered as a type of indirect loan. The bank is taking the risk for you, and for this it can also ask for margin money, charges, and collateral. If you do not make the payment as per the LC, then the bank will recover it from you.

Post Office’s special scheme: You will earn Rs 2.54 lakh from interest alone… you will also get a loan

Jyoti — Mon, 30 Dec 2024 19:55:27 +0000

If you want to earn good money without risk, then Post Office schemes can be better for you, which can help you earn good money in a short time. Post Office Small Saving Schemes are very popular, which also includes Office Recurring Deposit i.e.

Post Office RD. In this scheme, you can raise a huge amount of Rs 8 lakh by investing just Rs 5000 every month. The specialty of this scheme is that people can also get loans easily.

In the year 2023, the government gave a gift to the investors by increasing the interest rate on the Post Office Recurring Deposit Scheme. These new rates are applicable in the October-December 2023 quarter. Talking about the interest rate on investment in this scheme, an interest rate of 6.7 percent is available, which is revised on a quarterly basis. But under the scheme, benefits are given on an annual basis.

How to raise Rs 8 lakh just from RD It

is very easy to calculate the investment and interest in Post Office RD and if we talk about how you can raise a fund of Rs 8 lakh by saving just Rs 5,000 per month under this scheme, then let us tell you that if you invest Rs 5,000 every month in the Post Office Recurring Deposit Scheme, then in its maturity period i.e. five years, you will deposit a total of Rs 3 lakh and at the rate of 6.7% interest on this will add Rs 56,830. That means, in total your fund will be Rs 3,56,830 in five years.

Now you should extend this RD for another five years. Meaning if you extend it for the next five years, then the amount deposited by you in 10 years will be Rs 6,00,000. Along with this, the interest amount on this deposit at the rate of 6.7 percent will be Rs 2,54,272. In this way, your total fund deposited in 10 years will be Rs 8,54,272.

You can also take a loan.

You can open an account in Post Office Recurring Deposit Scheme by going to any nearest post office. You can start investing in it from Rs 100. The maturity period of Post Office RD is five years, but if you want to close the account before the completion of this period, then this facility is also available in this saving scheme. Loan facility is also given in this. After the account is active for one year, a loan of up to 50 percent of the deposit amount can be taken. However, the interest rate on the loan is 2 percent higher than the interest rate.

RBI Repo Rate: RBI gave big relief and did not increase repo rate, Your loan will not be expensive

Pravesh Maurya — Thu, 06 Apr 2023 05:28:25 +0000

Reserve Bank Of India Repo Rate: The Reserve Bank of India has not increased the repo rate this time and has given relief to the people.. RBI Governor Shaktikanta Das (RBI Governor) Shaktikant Das) said that no decision has been taken to increase the repo rate.

Although the global conditions are challenging and due to its effect, the Indian conditions have also been seen. The Monetary Policy Committee of RBI has taken this decision with majority.

What is RBI’s forecast for growth?

For the financial year 2024, RBI has increased it from 6.4 percent to 6.5 percent without increasing the economic growth rate. In this way, RBI is confident of a slight increase in growth.

What did the RBI governor say on inflation

The RBI governor said that “there are still many challenges before the country’s central bank on the inflation front and our work is not over yet. Till the time the inflation rate comes close to or under the target set by the RBI, we will have to continuously Gotta work.”

Repo rate will remain at 6.5 percent

Under the monetary policy before the financial year 2023-24, Governor Shaktikanta Das has informed about not increasing the repo rate. Now the RBI repo rate will remain at 6.50 percent. The government last increased the repo rate for the financial year 2022-23 on February 8, 2023.

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Central employees: Good news! Government is giving 10,000 rupees to every employee.

Pravesh Maurya — Wed, 08 Mar 2023 14:28:03 +0000

7th Pay Commission latest news : Central employees have received a big gift from the government on Holi . It has been announced by the Central Government to give Special Festival Advance Scheme .

Central employees will get Rs 10,000 under this festival advance scheme. Means central employees can take an advance of Rs 10,000 on Holi. They will not have to pay any interest on this. The central government had announced this for the central employees last year as well.

Money will be credited to the account

This gift is given to the employees every year by the Ministry of Finance. This is called Advance Pre Loaded. The money coming into the account will have to be spent by the Central Government employees only before March 31. The best thing about this scheme is that the employees do not have to pay any interest on this advance. Along with this, the terms of repaying this loan are also very easy. There is a rebate of returning this money in 10 installments at the rate of Rs 1000 per month.

An allocation of about Rs 4000-5000 crore is made annually by the Ministry of Finance under the Festival Advance Scheme. Employees can spend this advance digitally only. Earlier, the government used to provide facilities like LTC Cash Voucher Scheme to the central employees.

The benefit of increased DA will be available in March

Central employees will get the increased dearness allowance in the salary of March. His DA has been increased by 4%. The minimum basic salary of Rs 18,000 has increased by a total of Rs 720 per month. At the same time, the maximum salary range of Rs 250000 will increase by Rs 12000.

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Bank News Rules issue : If the loan is not repaid, then these challenges may have to be faced, know – when does the auction come?

Pravesh Maurya — Tue, 04 Oct 2022 11:29:13 +0000

Bank Rules: There must be a moment in everyone’s life when he thinks of taking a loan. There are many types of loans. Like what is taken for building a house, it is also taken for home loan and similar car etc. Such loans fall under the category of secured loans.

Now in these loans, the bank mortgages a property with itself as a guarantee. If seen, if the loan is taken, then its installment will have to be paid. However, many times people are not able to return the money. In such a situation, they have to face a lot of problems.

Obviously, when the loan is taken, it will have to be repaid one day. Then the bank starts the action to withdraw its money by doing various types of work.

Reminders are sent first

Let us tell you that if two EMIs of the loan are not given, then the bank sends you a reminder. In the case of a similar home loan, if you miss three installments, a legal notice is sent. Even after that, if you do not pay the money, then you are declared a defaulter by the bank.

If you do not repay the loan on time, then it spoils your record. It has a bad effect on the credit score. This again makes it difficult for you to get a loan the next time around.

Auction comes to an end

If you do not pay three installments and then do not take the warning seriously, then you will come under NPA. For example, if your property is also mortgaged in the secured loan, then in case of non-payment of the loan, the bank can sell that property and repay the loan. The bank can take possession of your mortgaged property. Then it will be the right of the bank.

Auction was the last option

The bank sends reminders and notices. Even after this, if the borrower does not pay the loan, then the bank takes possession of the property of the person concerned and after that the auction process starts.

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New Post Office Plan : This post office scheme will give returns of lakhs, open your account with just Rs 500, read here full details

Pravesh Maurya — Mon, 29 Aug 2022 04:35:53 +0000

Post Office Scheme: Investment in the post office is considered a safe investment. Actually, the returns are good in the stock market and mutual funds, but the risk factor is also the same there. But, many people do not want to take the risk. In such a situation, you invest in such a place where your money is absolutely secure and you get good returns without any risk.

If you also want to make such an investment where there is a strong profit, then this post office scheme can be better for you. If you have opened an account in this post office scheme, then you can get returns of lakhs.

You can start with Rs.100

Investment in the Post Office’s Small Saving Scheme Recurring Deposit is completely secure. You can invest in this scheme from Rs 100 and there is no limit on the maximum amount to be invested. You can invest in Recurring Deposit Scheme for one year, two years or more as per your convenience. In this scheme, the post office also pays interest every quarter.

Loan can also be taken

In this scheme of post office, any person of 18 years of age or above can open his account. A parent can open an account for his minor child. You can also get a loan from this post office scheme. To take a loan, you have to approach your post office branch. You can also deposit this loan in 12 installments. You can take 50% of the amount deposited in your account as a loan.

You will get 16 lakhs like this

If you invest an amount of Rs 16,000 every month in a recurring deposit scheme, then after 10 years you will get more than Rs 26 lakh. Suppose you deposit 16,000 rupees every month, then in a year you will deposit one lakh 92 thousand rupees. Similarly, you will have to invest in this scheme for 10 years. In this way you will deposit Rs 19,20,000 as investment. After this, after the maturity of the plan, you will get Rs 6,82,359 as return.

In this way you will get a total of Rs 26,02,359 after 10 years. In this way you can earn lakhs of rupees by investing in recurring deposits.

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Good news for post office customers, 35 lakhs will be available on depositing only 1500 rupees!

Pravesh Maurya — Fri, 26 Aug 2022 15:03:37 +0000

Post Office Scheme: There is great news for the post office customers. If you have also opened an account in the post office (Post Office 2022) or if you are planning to take a scheme, then today we will tell you about such a scheme, in which you can get a benefit of Rs 35 lakh.

Let us tell you that the post office is still considered a best option for investment. In this your money is completely safe. Today we will tell you about the Post Office Gram Suraksha Yojana, in which you get huge benefits.

You will get 35 lakhs instead of 1500, let us tell you that the Post Office Gram Suraksha Yojana is a kind of insurance scheme, in which you have to invest only 1500 rupees every month and you will get 35 lakhs in return.

Know what is the specialty of this scheme (Post Office Gram Suraksha Yojana)

This is a government insurance scheme of the post office.
Anyone aged 19 to 55 can take advantage of this scheme.
The minimum sum assured under this plan is Rs 10,000.
Apart from this, if we talk about the maximum amount, then it is 10 lakh rupees.
In this plan, you can pay the premium amount on monthly, quarterly, half yearly and yearly basis.
Apart from this, 30 days discount will be available on payment of premium.

Loan is also available
Let us tell you that in this scheme you also get the benefit of loan. Apart from this, you also get the facility of loan insurance. Let us tell you that you can take advantage of the loan facility only after 4 years of taking the policy.

How to get 35 lakhs?
If you start investing in this scheme from the age of 19 and buy a policy of Rs 10 lakh, then you will get a monthly premium of Rs 1515 for 55 years, Rs 1463 for 58 years and Rs 1411 for 60 years.

Maturity benefit of Rs 31.60 lakh will be available for 55 years.
There will be a maturity benefit of Rs 33.40 lakh for 58 years.
Maturity benefit of Rs 34.60 lakh will be available for 60 years.

There is also the option of surrender.
The special thing about this scheme is that you can surrender this policy too, but you can surrender only after 3 years.

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EPFO Account Rules: Deposit in PF account can be attached to pay off your loan? what is the rule

Pravesh Maurya — Tue, 26 Jul 2022 06:55:30 +0000

EPFO Account Rules: If you take a loan and are unable to repay it, the lender can seize your property and compensate for that loss. But do you know that salaried people also have such property which is legally protected from any such attachment. We are talking about Provident Employees Fund (EPF).

In case of any financial emergency, it cannot be confiscated to pay off the debt. It has legal protection under section 10 of the EPF and MP Act 1952. Therefore it cannot be attached. Attachment of property means that you will not be able to use or sell it. However, it is not only EPF which has got such protection. Deposits under many other schemes also cannot be attached. Let us know about them in detail.

EPFO Employees Provident Fund and Employees Pension Scheme are covered under the above section. Employers and employees contribute 12-12 per cent of basic salary and DA in EPF. It is considered an important component of social security, hence it has been given legal protection. It is worth noting that the facility of EPF is available only to the people working in the organized sector. Your employer also cannot compensate any loss done by you from the PF account.

The amount deposited in the PPF account has legal protection under Section 14A of the PPF Government Savings Bank Act 1873.Every Indian citizen can invest in this. You can invest in PPF from Rs 500 to Rs 1.5 lakh per year. The interest rate on PPF is 8% per annum.

The amount of NPS National Pension Scheme (NPS) has legal protection under Section 6A of the Pension Fund Regulatory Authority of India. It is seen as an important saving scheme for old age.

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ITR Big News: Benefits of filing ITR before last date

Pravesh Maurya — Sat, 02 Jul 2022 11:27:23 +0000

Income Tax Return: The process of filing Income Tax Return for the financial year 2021-22 has started. As per the current income tax laws, the last date for filing ITR for individuals, Hindu Undivided Families (HUFs) is 31st July. 31st July 2022 The last date for filing ITR is applicable for those taxpayers whose accounts are not required to be audited.

This is the last date

At the same time, individual income tax payers are required to file income tax by 31 July. If you file income tax after this, then penalty can also be imposed. If someone’s age is less than 60 years and his income is less than 2.5 rupees per annum, then such people do not have to pay tax but still such people can file income tax return. Income tax can be filed even if the income is not taxable.

keep documents with you

At the same time, let us tell you that for the income tax filing process, you do not need to upload any document while filing the income tax return. It is a process in which documents are not uploaded. However, in case of any inquiry through the prescribed officer, documents and certificates should be with you so that you can avoid any action.

Benefits of filing ITR

Ease of availing loan.
Can claim TDS.
ITR copy can be used as a document for loan or credit card application.
Visa application process can be easy.
Comes to work to show proof of income.
ITR is also used to show identity
Penalty can be avoided.
Loss of capital gains may be covered.
May also indicate loss or damage to property.

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